BANGKOK- Operators from nine product categories have made known their intention to cut the prices of their goods following a fall in oil prices with the Ministry of Commerce planning to hold a major Blue Flag event at the end of the month ahead of smaller fairs to assist rubber farmers from February through March.
Director-General of the Department of Internal Trade, Wiboonlak Ruamraksa, has acknowledged that a drop in oil prices has resulted in cheaper transport costs for goods and allowed for many products to have their prices shifted down. She especially pointed out that a major reduction in diesel, which accounts for about 14 percent of product costs, has prompted business operators to allow their retail prices to fall.
Initially, 274 items in 21 categories saw their prices cut, but a drop in diesel to less than 20 baht per liter has let another 9 categories follow suit. The items in the second lot of now cheaper goods include powdered milk, canned fish, jasmine rice and steel. Fish sauce is also expected to move down in price, but its adjustment has been attributed to greater competition.
On top of closely following pricing, the Ministry of Commerce is also planning to hold more Blue Flag Fairs, with a major round to take place at IMPACT Muang Thong Thani this 27-31 January. The event will feature essential items such as eggs, sugar and vegetable oil on sale at 20-40 percent below market price. Some 150 thousand people are expected at the fair.
After the major event, the ministry plans to hold smaller Blue Flag Fairs in the south to assist rubber farmers being affected by the dwindling price of the plant.
